PurposeThe purpose of this paper is to report the findings of an exploratory study examining users' perceptions and uses of SMC financial reports in the transitional economy of Vietnam.Design/methodology/approachSemi‐structured interviews were conducted with a wide range of users of financial information.FindingsThe range of users of financial information was limited, mainly the tax authorities and government agencies. Banks were considered to be another important user, but only by a minority of the companies interviewed. External users were concerned with the reliability of information provided by SMCs. In addition to the main indicators in the financial statements, cash flow information and forecasts were seen as important, but these were normally unavailable or poorly presented.Research limitations/implicationsAs the study focuses on a small sample of users of financial information, the generalisability of the findings is restricted. Appropriately designed quantitative studies could be conducted to verify the findings of this study.Practical implicationsAccounting expertise was seen as the main concern in the directors' use of information. The study also found a low awareness of cost‐benefit considerations amongst the directors of SMCs. Auditing was regarded as infeasible because of the low quality of the audits available and inadequate capacity of auditors to supply the small company market.Originality/valueThe study offers rich data on the users' perceptions and uses of financial information of SMCs. This is the first time this type of research has been conducted in Vietnam.